RCBC posts lower net profit in first half

The Rizal Commercial Banking Corp. (RCBC) posted a P2.2-billion net income as of end-June, fueled by steady growth in its core businesses but dampened by lower trading gains.
Net profit of the Yuchengco-led lender slipped by 6.4% from the P2.35 billion it previously reported during the first six months of 2017.
In a disclosure, RCBC said core income posted a robust 47% growth year-on-year, with net interest income growing 12% to P9.7 billion as yields improved.
Total loans and receivables also surged by 14% to reach P372 billion. Credit lines extended to the small business segment rose 36%, while credit card debts picked up by a third. Both consumer and corporate loans also posted increases worth 17% and 11%, respectively.
Despite the pickup in lending, soured debts took a measly 1.18% share of total loans, improving from 1.35% in the same period last year.
Bank deposits also grew to reach P396.4 billion.
Despite the income drop, RCBC president and chief executive officer Gil A. Buenaventura said they are “above target” as of the first semester.
“With the new P15 billion capital raised in July, we will remain focused on growing our lending business especially the Consumer and SME, and Microfinance business throughout the Philippines.” Mr. Buenaventura added.
RCBC, the country’s tenth-biggest bank, currently runs 509 branches nationwide, adding 14 new offices from 495 in June last year. The bank’s network of automated teller machines also grew to 1,597 during the first semester. — Melissa Luz T. Lopez